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German labour market begins to recover from the pandemic

German labour market: The number of job vacancies in Germany has risen in the third quarter of 2020, allaying fears that the coronavirus pandemic (COVID-19) will erode the labour market in Europe’s largest economy, DPA reports.

Between July and September 2020, the German labour market birthed a number of job vacancies which rose by almost 5% to 934,000, the German Institute for Labour Research (IAB) announced on Tuesday, warning that the pandemic is still affecting employment.

Compared to the second quarter of 2020, the number of job vacancies has increased by 41,000, according to IAB data.

“Since the beginning of the pandemic, many companies have been reluctant to hire. Uncertainties about the evolution of the pandemic also have a negative impact on labor market trends, “said Alexander Kubis, a researcher at IAB.

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Compared to the third quarter of 2019, the number of vacancies decreased by 31% to 426,000, according to IAB data.

According to data released last week by the Federal Bureau of Labor, the number of unemployed in Germany fell by 35,000 in October to an adjusted figure of 2.863 million, while analysts expected a lower decline of 5,000.

Unemployment in Germany also fell to 6.2% in October from 6.3% in September.

The Federal Labor Office said the number of people included in the “Kurzarbeit” scheme – reduced working hours – fell to 4.58 million in August, from a peak of almost six million in April during the peak of the crisis.

But analysts expect the unemployment rate to rise in the coming months, following new restrictions introduced as the number of new coronavirus cases increases.